PASSENGER numbers at Southampton airport have plummeted because of competition from low-cost airlines.

The Eastleigh airfield proved relatively immune to the effects of last year's terror attacks in America, but low fares available from bigger airports have proved more of a problem, the airport consultative committee heard.

After years of steady growth, the airport's latest passenger figures show a dip of 8.1 per cent.

The drop is revealed just 24 hours after the Daily Echo told how Whitehall claims that passenger numbers at the airport will shoot up to 7.1 million by 2030 if expansion plans at Heathrow and Gatwick do not get the go-ahead.

There were less than 800,000 passengers in the year to September - down from a moving annual total of more than 872,000 reached in June 2001.

British Airways has been cutting fares from Southampton in a bid to reverse the decline, and the airport claims to have evidence that passengers are starting to return.

Airport managing director David Cumming said: "In September we were the only BAA-owned airport to show a reduction in traffic on last September."

Mr Cumming told the airport consultative committee that much of the reason for the poor relative performance was that big airports with long-haul routes had been worst hit by the fear of flying that followed the US hijackings so it was easier for them to show an increase now.

But Mr Cumming admitted that the bounce-back elsewhere was not the only reason for his airport's inferior performance, adding: "There's an underlying trend for reduction in traffic from Southampton."

He said the fall was a lot to do with prices, including cheap fares from Heathrow to destinations served by Southampton.

But fares from Southampton had now been reduced, too, with most British Airways destinations available on the Internet for £99 - provided passengers booked a month or so ahead.

The airport chief added: "It's taken a bit of time for price decreases to get down to Southampton.

"We have seen an increase in traffic over the last few weeks as these cheap fares go through the market, so I'm cautiously optimistic these prices will attract back passengers who might have gone to Heathrow."

Mr Cumming said that the chief executive of British Airways, Rod Eddington, had made clear his intention to increase flights from South-ampton during a recent visit to the airport.